2 Hoovers winning platform was based on continued prosperity We in America today are nearer to the final triumph over poverty than ever before in the.

The Great Depression

2

Hoover’s winning platform was based on continued prosperity

“We in America today are nearer to the final triumph

over poverty than ever before in the history of any land. The poorhouse is vanishing from

among us.” 1928

Lack of Diversification

Unequal Distribution of Wealth

Overproduction in Industry and Agriculture

Decline in Exports

International Debt Structure

Monetary Policy – credit structure

Stock Market Crash and Financial Panic

Historians disagree as to the causes of the Great Depression. Most scholars would include:

The 1920s was known as a

prosperous time, but not for everyone

Installment buying allowed people to buy cars, radios and other new products of the

1920s.

Farmers, however, were in a depression throughout the whole

decade.

RURAL POVERTY IN THE 1920’S

Nation's wealth grew by billions in 1920s but not distributed evenly

Top 1% received a 75% increase in their disposable income

Other 99% saw an average 9% increase in their disposable income.

80% of Americans had no savings at all.

UNEQUAL DISTRIBUTION OF WEALTH

0

10

20

30

40

50

60

70

80

1929

TOP 1%

BOTTOM 99%

The chart shows that 99% of the population received a 9% increase in their income, while

the top 1% saw their income rise by 75%.

1,230,000 Americans

121,770,000 Americans

8

65

70

75

80

85

90

1923 1929

income

The economy grew by billions throughout the 1920s. Total realized income rose from $74.3

billion in 1923 to $89 billion in 1929

0

100

200

300

400

500

600

700

1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941

Chart showing wages of unskilled workers. Notice how little the wages changed during the supposed prosperity

of the 1920’s.

HIGH TARIFFS AND WAR DEBTS

European nations owed over $10 billion ($109 billion in 2010 dollars based on CPI) to US

The U.S. insisted former allies pay (forces the allies to demand Germany pay reparations – will later lead to financial crisis when Europe could not purchase goods from the U.S)

Fordney-Mc Cumber Act,1922 - high tariffs on industrial products. Other nations soon retaliated and world trade declined helping bring on the great depression.

11

Wages not rising enough for workers to buy all goods being made

The surplus products could not be sold overseas due to high tariffs and lack of money in Europe

Overproduction & Lack of Diversity in Industry

FARM OVERPRODUCTIONDue to surpluses and

overproduction, farm incomes dropped throughout the 1920’s

The price of farm land fell from $69 per acre (1920) to $31 (1930)

Agriculture in depression from 1920 until the outbreak of WWII in 1939.

Average annual income for an American family $750 -for farm families was $273 (1929)

30% of Americans still lived on farms.

Surplus ears of corn

STOCK MARKET CRASH AND FINANCIAL PANIC

WALL STREET ON THE DAY OF THE CRASH, OCTOBER 1929

Stocks overpriced due to speculation

Fraud & illegal activity occurred due to lack of regulation

Margin buying

Federal reserve policy

Major reasons for the stock market crash in October 1929

Federal Reserve Monetary Policy

9,000 banks bankrupt or closed 1930-1933

More than $2.5 billion in deposits lost

Fed worsens situation by raising interest rates (contracting money supply even more)

Failing business layoff workers – 25% unemployment rate (1932)

Those working worked for less

16

"I do not believe that the power and duty of the

General Government ought to be extended to

the relief of individual

suffering. . . . The lesson should be

constantly enforced that

though the people support the

Government the Government should not support the

people." (1930)

President Hoover’s belief in self-reliance would later affect his ideas about how to best

solve the upcoming depression

President and Mrs. Hoover

Belief excessive welfare undermines moral fiber of citizenry

Red Cross & Salvation Army lines around the block

Humiliation & self blame

Many to resort to

wandering

Dust BowlFarmers suffering increases

Natural disaster & overuse – “black blizzards”

“Okies” on way to CA

Join bands of the “just wandering”

Agricultural product

1912-1913 1932-1933

Corn (per bushel) 0.56 0.20

Wheat (per bushel) 0.88 0.41

Oats (per bushel) 0.34 0.17

Butter (per lb) 0.21 0.13

Butterfat (per lb) 0.25 0.16

Wool (per lb) 0.24 0.10

Hogs (per cwt) 7.50 3.80

Milk (per cwt) 1.79 0.90

Table shows the sharp decline in the prices of various products from American farms

20

YEAR WHEAT CORN OATS POTATOES PEANUTS

1919 216.3 150.7 76.7 191.1 9.33

1920 182.6 61.0 53.8 133.2 5.26

1921 103.0 52.7 32.2 113.5 3.99

1922 96.6 75.2 37.4 68.6 4.68

1923 92.6 83.5 40.7 91.5 6.78

1924 124.7 105.3 47.8 71.5 5.68

1925 143.7 69.9 38.8 166.3 4.56

1926 121.7 75.3 40.1 136.3 4.97

1927 119.0 84.9 47.1 108.9 5.04

1928 99.8 84.3 40.7 57.2 4.90

1929 103.4 79.8 41.9 131.5 3.83

1930 67.0 59.4 32.2 91.5 3.54

1931 39.0 32.1 21.3 46.4 2.09

1932 37.9 31.8 15.7 38.8 1.53

U.S. Department of Agriculture’s yearbook from 1934 shows the unstable prices of foodstuff

1910 1918 1932

Average gross receipts

2177 3837 1512

Average expenditures

770 1655 1019

Balance 1407 2182 493

Table shows the extreme drop in profits for farmers. This explains why they were unable to afford new equipment, and in many cases

their mortgages, which led to the hundreds of thousands of foreclosures on farms.

Great Depression & Minority GroupsAfrican Americans

many tried to find better situation in North(not)

bumped out of jobs by social downshift of whites

Scottsboro case (noteworthy ex. of racism)

NAACP succeeded in getting a place in labor

movementMexican Americans

Chicanos similar job & social status as African

Americans

Many forced to leave country – especially since

excluded from relief programs

Efforts to organize labor thwarted

Found same poverty in cities as urban blacks

Asian Americans

Long standing discrimination trends continued &

worsened

Primarily forced to stay w/in own community for

low paying service work even if college educated

Women

Popular belief jobs should go to men only- men taking “women’s” jobs (teachers, social workers)

20% more women working than before

National Women’s Party pretty much gone – feminism at a significant low point

Prosperous 1920s middle class families now homeless or poor

Doing a lot own sewing, canning, food preserving

Family members move in together to pool resources

Decrease in divorce rates, marriage rates and birth rates

Families break apart because of economic/ psychological strains

Depression Values

“Success Ethic” still major influence in Americans’ understanding of how things work

Self blame major factor in “hiding” the realities of the era (so ashamed didn’t want to be seen)

How to Win Friends & Influence People (1936) – belief in adapting to become successful no matter what the situation

Depression Era Literature Waiting for Lefty- labor struggles

U.S.A – pessimistic political & social commentary

Native Son – struggles of racism in urban setting

27

The RadioRoute to escapism (comedy, adventure, soap operas,

music)

Access to public events (Hindenburg crash, War of the Worlds broadcast)

Centered life around home & created common social/ cultural experiences

TheMovies

Attendance dropped & then came back up

Examined political & social themes (morality & virtues of the “little” guy

Escapism

"Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931)

They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread?

Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime?

Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!

Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime?

Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!

Say, don't you remember, they called me Al; it was Al all the time. Say, don't you remember, I'm your pal? Buddy, can you spare a dime?

The Popular FrontSocial critics with a more

optimistic attitudeSolidifies during mid 1930sLinked with promoting

Communist Party in USHelped create Lincoln BrigadeUnemployment protest in DCLoses support when Moscow

calls for a return to anti-liberal stance

The New LeftImportant “acceptable” outlet for writers,

workers, intellectualsNew Deal sponsored literature often critical

of social condition w/leftist slant (Grapes of Wrath)

President HooverVoluntary economic cooperation

failsActions too weak or too limited

Agricultural Marketing ActHawley-Smoot TariffReconstruction Finance Corp

Discontent: Farmers’ Holiday, Hoovervilles, Bonus Army

Election of 1932

With no specificity of program landslide win for FDR

Tense interregnum – no cooperation or connection bwtn admins

Nothing to fear